50% Of Cash Proceeds From Sale To 2nd Hdb Loan

[Roflmaoxz 0]

Look like u have not cleared yr loan for yr existing resale. HDB allows one to buy first and sell the existing within 6 months date start counting from 2nd appt date of the unit u buy.

When u buy, if borrow "ah kong"'s money (I assume would be yr 2nd hdb loan) then need pack back 50% back...and 10% rule also apply.

If you clear the loan of existing unit and use bankloan to buy another unit, no 50% cash issue , as well as no 10% DP issue, understand?

Understand liao.

[rini803 0]

Look like u have not cleared yr loan for yr existing resale. HDB allows one to buy first and sell the existing within 6 months date start counting from 2nd appt date of the unit u buy.

When u buy, if borrow "ah kong"'s money (I assume would be yr 2nd hdb loan) then need pack back 50% back...and 10% rule also apply.

If you clear the loan of existing unit and use bankloan to buy another unit, no 50% cash issue , as well as no 10% DP issue, understand?

Sorry I still don't get it...

I will soon be facing this...

Eg bought my 4Rm at 198k. Sold it at 320k

purchasing new flat at 520k. requested cov @ 30k

my 1st loan not cleared yet. this will be my 2nd loan with hdb but 1st time with grant.

1st flat taken without grant.

so my calculation? i would be earning 120k as profit 50% goes to my new flat.

60k is part of the 10% cash deposit of the new flat 520k? or is it 60k (50% resale profit) +52k (10% cash deposit)?

after that then inclusive of all cpf + grant...

where does COV for the buyer lies? COV part of the 10% cash deposit?

So confusing... help...

[mummyboi 0]

Sorry I still don't get it...

I will soon be facing this...

Eg bought my 4Rm at 198k. Sold it at 320k

purchasing new flat at 520k. requested cov @ 30k

my 1st loan not cleared yet. this will be my 2nd loan with hdb but 1st time with grant.

1st flat taken without grant.

so my calculation? i would be earning 120k as profit 50% goes to my new flat.

60k is part of the 10% cash deposit of the new flat 520k? or is it 60k (50% resale profit) +52k (10% cash deposit)?

after that then inclusive of all cpf + grant...

where does COV for the buyer lies? COV part of the 10% cash deposit?

So confusing... help...

correct me if im wrong, from my knowledge.

if u taking hdb loan for the next flat, they will deduct the grant first, then all yr cpf(including those used for old flat and current amount inside) will be wiped out and half of yr 120k will go inside new flat.

You got ask cov for yr old flat? if yes, the whole amount will be use for compile by HDB.

Then yr cov for your new flat 30k, u gotta pay with yr the other 60k dat you had left.

cov cannot be inside the 60k to hdb and cpf.

The 10% depsoit can be in cpf.

[marshmallow 0]

Sorry I still don't get it...

I will soon be facing this...

Eg bought my 4Rm at 198k. Sold it at 320k

purchasing new flat at 520k. requested cov @ 30k

my 1st loan not cleared yet. this will be my 2nd loan with hdb but 1st time with grant.

1st flat taken without grant.

so my calculation? i would be earning 120k as profit 50% goes to my new flat.

60k is part of the 10% cash deposit of the new flat 520k? or is it 60k (50% resale profit) +52k (10% cash deposit)?

after that then inclusive of all cpf + grant...

where does COV for the buyer lies? COV part of the 10% cash deposit?

So confusing... help...

correct me if im wrong, from my knowledge.

if u taking hdb loan for the next flat, they will deduct the grant first, then all yr cpf(including those used for old flat and current amount inside) will be wiped out and half of yr 120k will go inside new flat.

You got ask cov for yr old flat? if yes, the whole amount will be use for compile by HDB.

Then yr cov for your new flat 30k, u gotta pay with yr the other 60k dat you had left.

cov cannot be inside the 60k to hdb and cpf.

The 10% depsoit can be in cpf.

just to add on, the 10% downpayment everyone's talking about is 10% of the valuation value of the flat. COV is not part of the valuation and must be paid by cash, it is not in the picture of your housing loan...

As you mentioned, total cash proceed is ~120k, so 60k must go to finance your 2nd home. since your new flat is 520k (520k means valuation 490k + COV 30k?), this 60k is enough for the 10% downpayment.

then the remaining 60k cash that goes to your pocket, you can use it to pay the 30k COV.

(Other forumers, please feel free to correct me if I'm wrong...)

why not you try the housing loan calculator on HDB's website?

http://services2.hdb.gov.sg/webapp/BP27MaxLoan/BP27PMax1.jsp

if still dun understand, call/e-mail HDB to ask, hear from the "horse mouth"

[mummyboi 0]

to add on.

If u r selling n buying at the same time.

If 2nd app from selling is not up yet, and you going for yr 1st app for buying,

during 1st app for buying, you gotta ensure that yr cpf is enuff to pay yr new flat 10%, if not you gotta fork out in cash during buying 1st app.

after selling 2nd app, u need around 14 days(or maybe lesser a bit or if doing contra will be dis long) for cpf to go in, as for cash proceed will be immediately on dat day itself..

So after 1st app buying, you had got 10 days to pay the cov n 10% deposit.

[Roflmaoxz 0]

just to add on, the 10% downpayment everyone's talking about is 10% of the valuation value of the flat. COV is not part of the valuation and must be paid by cash, it is not in the picture of your housing loan...

As you mentioned, total cash proceed is ~120k, so 60k must go to finance your 2nd home. since your new flat is 520k (520k means valuation 490k + COV 30k?), this 60k is enough for the 10% downpayment.

then the remaining 60k cash that goes to your pocket, you can use it to pay the 30k COV

Hi bro, this 10% downpayment can be paid in CPF if the buyer still have sufficient CPF prior to the sale? Since rini803 mentioned he wish to take HDB loan. Any other new ruling with regards of the "% of downpayment if take HDB loan"?

So you were to mean that if rini803 fork out $60k (50% of previous sale) to finance his 2nd home, he does not need to fork out additional of 10% HDB downpayment?

Pls advise.

Edited September 13, 2010 by Rof|maoxz

[marshmallow 0]

Hi bro, this 10% downpayment can be paid in CPF if the buyer still have sufficient CPF prior to the sale? Since rini803 mentioned he wish to take HDB loan. Any other new ruling with regards of the "% of downpayment if take HDB loan"?

So you were to mean that if rini803 fork out $60k (50% of previous sale) to finance his 2nd home, he does not need to fork out additional of 10% HDB downpayment?

Pls advise.

sorry, maybe i should clarify what i tried to say.

There is no special new rule for downpayment for HDB loan. According to HDB website, maximum loan quantum from HDB is 90% of valuation price or purchase price of the flat, whichever is lower.

http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/...at?OpenDocument

most of the time, the max. loan granted by HDB (as per the amount stated in your HLE) can cover the 90% of the flat price, hence people usually talk about "10% downpayment".

Since Rini803 did not mention the loan quantum he gets, then we assume the norm - that Rini803 can take loan for 90% of flat price. As such, 60k is more than enough for 10% downpayment. (since flat price less than 600k).

There is no rule that says this 10% downpayment must come from CPF. What's important is you have the money to finance the downpayment. But, dun forget that they will also wipe out your CPF if you are taking HDB loan. So, more often than not, one will pay more than 10% for "downpayment"

Also, loan quantum granted may vary on case by case basis. so there is always a chance that the loan granted cannot cover 90% of the flat valuation (remember, HDB says they want to "right size" the loan quantum? ). So the "downpayment" will increase as a result. For example:

Flat valuation: $500k

Loan granted by HDB (on HLE): $400k

Then one can only loan: $400k

Downpayment becomes: $500k - 400k = $100k (20% of valuation)

Hope you can understand what i mean... and sorry if my casual mentioning of "10% downpayment" has confused some

As individual situation varies, i think it's better to check using those financial calculators on HDB and CPF websites. see numbers, easier to understand.

[Roflmaoxz 0]

Hope you can understand what i mean... and sorry if my casual mentioning of "10% downpayment" has confused some

Because your post is abit different from what bro Warrior88 has posted dated Sep 3 2010, 05:09 PM. He posted for previous owners taking HDB loan, - Got 50% rule, 10% CPF DP.

You posted "As you mentioned, total cash proceed is ~120k, so 60k must go to finance your 2nd home. since your new flat is 520k (520k means valuation 490k + COV 30k?), this 60k is enough for the 10% downpayment."

So what you mean is if previous owners take up a 2nd HDB loan, and his 50% of his previous resale is sufficient to "cover the 10% downpayment", he does not require to pay the 10% downpayment, just the 50% cash proceeds will do. Is that what you mean? Thanks.

[Warrior88 0]

If eligible 2nd HDB loan. Basic rule=Got 50% cash proceeds rule, & 10% CPF down payment.

Cash Proceeds=(Selling Price-Buying Price)-(Grant)-(Accrued Interest)-(Bal Loan)

50% rule=keep the greater of $25,000 or half of the cash proceeds (including cash deposit)

50% keep=pay for COV if any, bal keep for reno or give to me.

50% to finance the purchase of the next flat, can be use for down payment & mortgage loan.

Sales must complete 1st home first. Then above can happen. (Timing crucial)

Don't forget (all CPF balance to finance the purchase of the next flat) wipe out

[marshmallow 0]

Because your post is abit different from what bro Warrior88 has posted dated Sep 3 2010, 05:09 PM. He posted for previous owners taking HDB loan, - Got 50% rule, 10% CPF DP.

You posted "As you mentioned, total cash proceed is ~120k, so 60k must go to finance your 2nd home. since your new flat is 520k (520k means valuation 490k + COV 30k?), this 60k is enough for the 10% downpayment."

So what you mean is if previous owners take up a 2nd HDB loan, and his 50% of his previous resale is sufficient to "cover the 10% downpayment", he does not require to pay the 10% downpayment, just the 50% cash proceeds will do. Is that what you mean? Thanks.

you mean whether the 10% downpayment is paid on top of the 50% cash proceed?

from what i understand from HDB website, answer is No... the cash proceed can be used to make up the downpayment.

but HDB also smart one, they will adjust the loan quantum accordingly to make sure that the 50% cash proceed will be fully utilised.

i think this calculator is better... you can get the answer you need after keying in all the numbers.

http://services2.hdb.gov.sg/webapp/BB29FIN/BB29FINP.jsp

Edited September 13, 2010 by marshmallow

[rini803 0]

I think I get it... basically if I have to pay HDB either 10% of the new home price (valuation 490k + 30k COV) or 50% of my cash profit from selling the house, which ever higher +COV + 10?% remainder frm the cpf (wiped out everything) and grant if short must top up cash right? Since its my 2nd loan and I still have loan from the previous house, I get only get up to 80% of the hbd loan. So far my HLE is 500k. Better on the safer side, I sell first and then buy... dun wanna end up forking more cash...

[Roflmaoxz 0]

Thanks bro marshmallow & Warrior88 replies.

Clear liao.

[Warrior88 0]

I think I get it... basically if I have to pay HDB either 10% of the new home price (valuation 490k + 30k COV) or 50% of my cash profit from selling the house, which ever higher +COV + 10?% remainder frm the cpf (wiped out everything) and grant if short must top up cash right? Since its my 2nd loan and I still have loan from the previous house, I get only get up to 80% of the hbd loan. So far my HLE is 500k. Better on the safer side, I sell first and then buy... dun wanna end up forking more cash...

Woh.. you super luan Lets do it step by step.

Your case, sell hdb w/o grant, buy resale with grant using HDB loan.

Sell House

Cash proceeds = 100k

A. 50k=Cash you keep

B. 50k, use for your 2nd home

Buy House

COV=30k (Cash) ... Use from (A) so you left 20k cash

Down payment=10% down payment, 90% mortgage loan (All CPF) + Stamp duty & legal fees (CPF)

Can use from (X)=Grant + (B) + Bal CPF in OA.

So most likely you will exceed the min 10% down payment. Eg if X =30%, your mortgage loan=70%

So if you wanna keep some cpf in OA for future use, Better park your cpf before buying.

Whether 1st house still got bal loan nothing to do with 2nd HDB loan, still 10% down payment CPF.

[marshmallow 0]

Woh.. you super luan Lets do it step by step.

Your case, sell hdb w/o grant, buy resale with grant using HDB loan.

Sell House

Cash proceeds = 100k

A. 50k=Cash you keep

B. 50k, use for your 2nd home

Buy House

COV=30k (Cash) ... Use from (A) so you left 20k cash

Down payment=10% down payment, 90% mortgage loan (All CPF) + Stamp duty & legal fees (CPF)

Can use from (X)=Grant + (B) + Bal CPF in OA.

So most likely you will exceed the min 10% down payment. Eg if X =30%, your mortgage loan=70%

So if you wanna keep some cpf in OA for future use, Better park your cpf before buying.

Whether 1st house still got bal loan nothing to do with 2nd HDB loan, still 10% down payment CPF.

Bro, just thinking that the statement "10% downpayment CPF" is confusing to some, cos the rule never says that this 10% must come from CPF. Even if CPF has $0, you can still pay the downpayment in cash (provided one has the cash la).

Just that if your CPF OA has money, they will wipe out the CPF first as according to their rules.

[Warrior88 0]

Bro, just thinking that the statement "10% downpayment CPF" is confusing to some, cos the rule never says that this 10% must come from CPF. Even if CPF has $0, you can still pay the downpayment in cash (provided one has the cash la).

Just that if your CPF OA has money, they will wipe out the CPF first as according to their rules.

Bro, I apologise if it is misleading. Cos, I would have thought that it is logical if one had no CPF, cash is the next option. Not only downpayment, your legal fees, stamp duty and mortgage loan can use cash

By the way, touching on those who buy first with no CPF, can use cash first for DP. After selling, can apply to get back cash refund.